Oct 17 (Reuters) - Huntington Bancshares ( HBAN ) reported a rise in its third-quarter

profit on Friday, as the regional U.S. lender benefited from increased interest income and fees

across all divisions.

Shares of the Columbus, Ohio-based bank rose 1.8% in premarket trading.

The results come amid renewed scrutiny of U.S. banks' credit quality after two auto-industry

bankruptcies and revelations of credit fraud, which have dragged lender stocks lower in recent

weeks.

Provision for credit losses was $122 million for the three months ended September 30, up

from $106 million a year earlier.

Its net interest income - the difference between what a bank earns as interest on loans and

pays out on deposits - jumped 11% to $1.51 billion during the period, reflecting lower funding

costs.

The Federal Reserve cut interest rates last month for the first time this year, providing

lenders and borrowers relief on the cost of capital. Huntington's results mirror those of peers

Citizens and PNC Financial, whose profits also jumped on higher interest income.

Noninterest income climbed 20% from a year ago, led by a 21% jump in capital markets and

advisory fees as dealmaking made a triumphant comeback during the quarter that saw markets

achieve multiple record highs.

Customer deposit and loan fees rose 19% to $102 million, benefiting from higher loan

commitment fees.

Net income attributable to the bank rose to $629 million, or 41 cents per share, from $517

million, or 33 cents per share, a year earlier.

Huntington's stock is down more than 5.5% year to date, compared with a 6.4% decline in the

KBW Regional Banking index.